KINGSWOOD GOLF ESTATE
THE NUTS &
BOLTS OF AN HOA
SO NOW YOU ARE PART OF A
HOMEOWNERS’ ASSOCIATION
What is an Homeowners’ Association and why do
they exist? Meeting. The board holds regular meetings to enforce
One of the main purposes of the HOA is to enforce budget, authorise expenditures, collect levies, solve
a set of promises that bind all owners. The promises
are usually contained in a document called a
Memorandum of Incorporation (MOI) or Constitution,
and include a set of policies, procedures, rules and
regulations. Many HOAs include common property, such
as parks and roads, or what is known as common
areas. Individual property owners are required to
pay levies (usually monthly) to enable the HOA to
operate the association and maintain that common
property. Common property insurance, security, waste
problems and oversee maintenance of the common
property. The board acts in much the same way as
a corporate board of directors, and many HOAs also
utilise committees to help administer the association.
For example, architectural control committees are
commonly used to maintain architectural consistency
in the community.
What kind of legal power do such associations have
to enforce their rules?
management, office administration, staff costs and The main source of legal authority allowing an HOA
common rates and taxes also come out of the levy. to enforce its rules comes from the recorded MOI and
Who serves on Homeowners’ Associations?
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the standard rules and regulations, to establish a
is bound by the Companies Act. 2008 Because the
documents are recorded with the registrar, property
HOAs are governed by a board of volunteer owners, owners become legally bound by the valid provisions
known as trustees or directors, elected by the remaining in these documents when they purchase their property.
owners at a properly constituted Annual General HOA rules may also provide additional legal authority